Financial Distress Is a Prerequisite to Good-Faith Bankruptcy Filing [Delaware Business Court Insider]

Barry Klayman, a member of Cozen O’Connor’s Commercial Litigation Department, and Mark Felger, co-chair of the firm’s Bankruptcy, Insolvency & Restructuring Practice Group, discuss a recent Delaware Bankruptcy Court case holding that a debtor’s financial distress is a prerequisite to a good faith bankruptcy filing in the Delaware Business Court Insider. The court dismissed the bankruptcy case because the debtors did not claim to be in financial distress, but instead sought to use the bankruptcy mechanisms to redistribute value from a long-time adversary to the debtors and their ultimate owner. 

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Mark E. Felger

Co-Chair, Bankruptcy, Insolvency & Restructuring

(302) 295-2087

Barry M. Klayman

Of Counsel

(302) 295-2035

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